Yes, the federal bankruptcy code was amended in 2005 to ensure that bankruptcy protection is extended for 401(k)s in all states for up to one million dollars. In a Chapter 7 bankruptcy, the filer's non-exempt assets are pooled together to form the bankruptcy estate. However, even under a Chapter 7 liquidation the debtor's 401(k) will be protected for up to $1,000,000 in value.
